An Explorative Study on Client's Turnover Reasons Cited by Ad-Agencies and their Clients

Abstract

The agency-client relationship is a very complex topic with many differing opinions on what makes a successful or unsuccessful relationship. There is no single factor which cements a strong bond between the agencies and the clients. It's a multitude of them, which makes it difficult to pinpoint a particular aspect and which could be responsible for making or breaking an agency-client relationship. A client does not approach an agency only because it produces creative stuff or it has media strength. The Client's turnover situation arises even when a thorough selection process has been used, and the various guidelines for liaison and coordination with the agency have been followed in the right spirit. In this context the research study has carried out by taking into consideration of 25 leading ad-agencies in New Delhi, offering services to both national and international clients and 50 clients these ad-agencies with the following specific objectives were i) the reasons behind the client's turnover from one ad-agency to another stated by the clients, ii) reasons quoted by the ad-agency for the clients turnover and iii) the steps taken by the ad-agency to retain their clients. The main finding of this study is the reasons for broken agency-client relationships are complex and very varied. However, the study reveals failure in understanding the clients needs, poor agency performance; lack of confidence, poor creativity appear to explain most failed agency-client relationships.